City Council · 2018-01-23

CITYOFOREM
CITYCOUNCILMEETING
56 North State Street Orem, Utah
January 23, 2018
3:00 P.M. WORK SESSION -PUBLIC SAFETY TRAINING ROOM
Mayor Richard F. Brunst
CONDUCTING
ELECTEDOFFICIALS Councilmembers Debby Lauret, Sam Lentz, Tom
Macdonald, Mark Seastrand, David Spencer, and Brent
Sumner
APPOINTEDSTAFF Jamie Davidson, City Manager; Brenn Bybee, Assistant
City Manager; Steven Downs, Assistant City Manager;
Greg Stephens, City Attorney; Karl Hirst, Recreation
Department Director; Richard Manning, Administrative
Services Director; Bill Bell, Development Services
Director; Scott Gurney, Fire Department Director; Gary
Giles, Police Department Director; Josh Sorensen, Library
Department; Chris Tschirki, Public Works Director; Steve
Earl, Deputy City Attorney; Jason Bench, Planning
Division Manager; and Donna Weaver, City Recorder
WELCOME -  UVU  Financial  Literacy  2018   Winter   Group from  Dalian  Maritime
University in China
At the invitation of the Mayor, the students introduced themselves and stated their majors. Staff
and elected officials also introduced themselves and briefly stated their roles in the City. Mr.
Davidson explained Orem's form of government and the election process. He then provided
statistics for services the City provided.
DISCUSSION - City Council Committee Assignments
Mayor Brunst reviewed the process for making City Council assignments. He said he preferred
to rotate Councilmembers’ assignments because it was important to have different perspectives
on issues.
Mr. Lentz reviewed the City Code regarding Councilmembers serving on commissions. He said
the code did not specifically indicate that the Mayor made those appointments. He asked the
code to be updated to specify that the Mayor is to make those appointments with the advice and
consent of the Council.
Mr. Davidson explained that a modification to the code could be made to reflect that the Mayor
made Council appointments.
City Council Minutes - January 23, 2018 (p.1)


Mayor Brunst read the City Code language that specified the process for selecting UTOPIA and
UIA board members. Those representatives were appointed by the City Manager with the advice
and consent of the City Council.
Mr. Davidson said the complexity of UTOPIA/UIA merited terms of service greater than a year
because there was wisdom in maintaining consistency. Within the bylaws, they could appoint an
alternate but that person did not need to be one specific individual. Mr. Davidson said the
meetings were public and the agendas were available. Any Councilmember could participate.
Mr. Seastrand said they had the same situation with the Utah Lake Commission. He said if both
the alternate and regularly designated board member showed up, the alternate sat in the audience.
The City did not have more than one voice during the meetings.
Mr. Lentz clarified that there was no mechanism in place for non-board members to dial into the
meetings electronically; he did not know of any plans to start live streaming them on YouTube.
The meetings were geared specifically towards individuals who were participating in person or
voting board members who could dial in.
Mr. Sumner asked if citizens attended UTOPIA/UIA meetings, to which Mr. Lentz responded in
the affirmative.
DISCUSSION-PWACUTOPIA Review
Mayor Brunst turned the time over to Mr. Tschirki and KC Shaw of the Public Works Advisory
Commission (PWAC). Mr. Shaw introduced the members of the PWAC: Dave McGinn, Drew
Clark, Carol Walker, Tod Hadley and Tai Riser. He noted Mr. Lentz was the Council liaison. Mr.
Tschirki then reviewed the length of time spent studying the issue.
Devon Rich, Orem resident, introduced himself and stated he attended the PWAC meetings
regarding this issue.
Mr. Shaw said they were tasked with studying UTOPIA and coming up with recommendations.
He explained that UTOPIA was a fiber optic system that ran from the Salt Lake Valley up to
Tremonton. He noted that only about a third of Orem had access to the service. They were tasked
with finding if there was a way to expand the service to all residents. He said if anyone claimed
to have a thirty second solution to UTOPIA this was untrue, because it did not exist.
People who were able to connect to UTOPIA had a very high satisfaction rate of about ninety
percent. It was a demand-driven model. They narrowed the City's possible solutions down to
five options from an original list of approximately twenty-five. Mr. Shaw then gave the
summarized history of UTOPIA Fiber:
UTOPIA (2002)
·$185 million bond to begin construction of open-access fiber network
· Bond payments made using city pledges of sales and use tax revenues
0Orem's share currently $3 million per year
0 Increases two percent annually ($4.8 million by 2040)
City Council Minutes - January 23, 2018 (p.2)


 Now breaking even operationally
Exceptionally high customer satisfaction
0Net promoter score of 60
 Industry average typically in 10s or lower
UIA (2011)
$66 million to continue expansion
0 Orem's maximum pledged contribution was $1.23 million per year
 Demand-driven model where subscribers also paid connection fee to fund infrastructure
Self-sustaining for five-plus years
Revenues covered capital/debt service, operations and maintenance
。 Cities had not had to pay any amount
increase of UTOPIA pledge
The PWAC came up with the following solution options:
·Option A: Maintain Status Quo
o  Ten-plus years estimated for build out throughout Orem
0No reduction in debt—each household would continue to pay about nine dollars
per month to fund bond payment
Option B: Public Utility Fee
0 Two- to three-year build out period
Orem issued $25 million bond to complete build out of Orem (contractors must
build to UTOPIA standards)
Each household would pay $3.25 per month utility fee to cover bond payments
Total cost to subscribe would decrease by fifteen dollars per month
Revenue sharing for new customers may help cover portion of original UTOPIA
o
debt
Option C: Orem-backed UIA Bond
0 Two- to three-year build out period
UIA issued $25 million bond to complete build out of Orem
Orem backs bond through pledge of franchise taxes
No utility fee or tax increase
Cost to subscribe would not change
Revenue sharing for new customers may help cover portion of original UTOPIA
debt
Option D: Private or Public-Private Partnership (PPP)—ELIMINATED FROM
CONSIDERATION
0 Previous privately funded option (Macquarie) was rejected as being too expensive
($22 per month utility fee)
 Private investment in fiber-to-the-home (e.g. Google Fiber) was scaling back
d  s    p  q ss 
companies
Option E: Special Assessment Area (SAA)—ELIMINATED FROM CONSIDERATION
o  Residents would petition Orem to form an SAA for UTOPIA installation, and
then vote whether to approve the SAA
0All residents within SAA would pay cost to construct, including non-subscribers
City Council Minutes - January 23, 2018 (p.3)


Liensmaybeplacedonhomesfornon-paymentoffees
O
City responsible for cost and burden to administer small SAAs and for any
O
shortfalls if residents did notpay
Mr.Shawpresented thefollowing charts depicting typical household cost modeling,as well as a
comparison ofoptions.
UTOPIA Cable/DSL/Wireless No Internet
B. C.UIA B.Utilty A.
AYStatus C.UIA B.Utility C.UIA
Utility A.StatusQuo Status
Quo Bond Fee Bond Fee Bond
Fee Quo
Connection Speed 250Mbps Same(upgradable 5.250Mbps1 Expectedincreases N/A N/A
250Mbps to1Gbps) 1.5-10Mbps↑
$65 $47 $65 $25-70 $15-40 $20-55 N/A N/A
ApproximateCost
ofService
ShareofCilyDebt $9 $5 $6 $9 $5 $6 $9 $5 $6
UtilityFee N/A $3.25 N/A N/A $3.25 N/A N/A $3.25 N/A
Total Estimated $74 $55 $71 $34-79 $27-48 $26-61 $9 $8.25 $6
Cost
MonthlySavings $19 $3 S11-31 $8-18 $0.75 S3
Annual Savings $228 $36 $129-369 $96-216 $9 $36
C.Orem-backed
Factor B.UtilityFee D.Private/PPP E.SAA
A.Status Quo UIABond
FiberAvailability
UTOPIADebtRelief
Costto Customers
Costto Non-customers
Legal/politicalhurdles
OptionC:Orem-backedUIABond
$25millionbondwouldrequireapprovalfromUIAboardandOremCityCouncil
Noutilityfeeortaxincreases(availableheadroominexistingfranchisetax
revenue)
O Five-yeartrackrecordwithself-sustainingmodel
Interest rate approximately3.8%for thirtyyears
O
Subscriber fees sufficient to cover payments at a twenty-two percent takerate
Oremcurrentlyatthirty-twopercent
O Sufficientdemandalreadyexisted
City CouncilMinutes-January23,2018（p.4)


O Existing customers remained on existing agreements, revenue continued to go to
UTOPIA/UIA
Qualitative Benefits
 All residents and businesses had access to high-speed fiber
Market competition benefited all citizens-not just UTOPIA customers
Improved protection of net neutrality
City more attractive to businesses/employers
Increasedhomevalues
More effective/efficient City services--both now and unforeseen opportunities for
innovation in future
Improved reputation as forward-thinking city
O
Increased City and individual security
O
QuantitativeBenefits
 Ten new ISP options for residential customers, twenty-five for commercial
Improved speed and service, lower prices (better value)
Improved financial equity between neighborhoods
Substantial financial upside to Orem (such as debt relief for existing bond
payments)
Option C: Potential Risks
· Financial model assumptions may be too optimistic
0 Impact: Less revenue or higher costs
 Comments: Financial model assumptions were very conservative
o
 Pledge would use significant portion of available franchise tax headroom
。 Impact: Opportunity cost of future projects
 Comments: Moderate risk that City must evaluate against future needs
Pledged franchise taxes would be used to pay UIA bond in the event of any shortfall in
system revenues
Impact: Loss of franchise tax funds
  o a sa e  o ssx p d p a r
。
twenty-two percent take rate
Construction costs could be higher than projected
0 Impact: Higher costs, increased pledge amount
Comments: UTOPIA provided build out costs and stood by estimates
·New technology reduced or eliminated need for high-speed fiber
0 Impact: Fewer customers and less revenue
0Comments: Fiber would always be required, even for wireless technology
Legal challenges may result from existing providers
Impact: Legal costs and new restrictions
 Comments: Legal counsel believed risk was very low
Assessment of Option C on City Council Priorities
Affordable: Develop strategies to make access to fiber more affordable in Orem
Debt impact: Evaluate strategies to reduce City's UTOPIA debt service obligation
System reach: Extend reach of fiber network within a reasonable time frame
Alternatives: Evaluate other technology alternatives that may complement and enhance
fiber
City Council Minutes - January 23, 2018 (p.5)


System stabilization:Strengthen or stabilize network's existing customer base (maintain
status quo)
Priority Relative Assessment
Affordable
Debt lmpact
System Reach
Alternatives
System Stabilization
PWAC'srecommendationstotheCouncilwereoutlinedasfollows:
Obtain citizeninput
Scientific, Citywide survey regarding a fiber build out in Orem and possible
funding options
Continue with recommended steps if survey results were positive
Initiate discussions with UIA to explore possibility of a UIA bond to build out Orem
Examine details of possible impacts to Orem for a UIA bond-funded build out
Impact on existing streets and utilities
O
Impact on City finances and capital improvements plans
O Possible methods to reduce construction costs,including alternative installation
methods
Formalize third party opinion of UIA bond-funded financial model
Accuracyandplausibility ofexistingmodel and assumptions
O
Impact to City bond rating
O
Note:Duetotechnicaldifficulties,therewasnoaudiorecordedfrom4:02pmto4:20pm.
Thesubsequentdiscussionincludedthefollowingcomments/concerns:
Residents were paying to UTOPIA was not a separate fee; they did not understand this
charge was coming out of the City's sales tax receipts.
Oremresidentswerenotexclusivelybearingthefinancialresponsibility.
Foreveryhomethatconnected toUTOPIAfiber,therewereanotherfourorfivehomes
that were paying the $9.o0 fee; the cost of delivering the service was therefore higher
thanwhatwasshowninPWAC'spresentation.
Therewas someissuewith the analogyof adirectnexusbetweenindividualsharesof
debt and every single house in Orem. There could be a tangential connection; however,
therewasnotadirectone.
ConcernwasexpressedthatanOrembondwoulddisappearintothegeneralUTOPIA
fund.
There would need tobe discussions with UTOPIA,as well as agreements signed,
betweenUIA and Orem to designatefunding specifically for this project.The bond
would be managed by UTOPIA under the cooperation of UIA and Orem City.
City Council Minutes-January 23,2018(p.6)


An assertion that the $3.25 utility fee came from the lighting fee and did not appear to be
sufficient for a twenty-five year period including interest was challenged.
The City would benefit from a full build-out with fiber technology, even for residents
who didn't have internet.
For the $3.25 fee, the City would have to show that each fee payer received a quantifiable
benefit that was at least equal to the amount of the fee.
 It was suggested that several telecommunications companies claimed the fee was illegal
and threatened to sue.
Provo's utility fee was for a previous debt and not a future one.
There were several qualitative benefits of a built-out fiber technology system that
couldn't necessarily be quantified, including a citywide emergency response system,
traffic lighting, and increased property values; additionally, the system would attract
businesses to the City as well.
Orem not owning the system was better with the third option
Consuming franchise taxes were a concern but there were currently no projects on the
horizon that required those taxes.
The City did not have any other debt with the potential to pay itself off.
The City had been paying for a service to which so few had access.
A demand model was not a debt model.
Concern was expressed that UTOPIA and UIA were not financially sound and had been
losing money.
The legislature should do another audit.
The motivation behind the audit had been to find fault with the network, rather than to
gauge its success.
For buildout, cost of construction was considered. Areas were targeted with the lowest
cost and highest takerate.
UIA could only bond based on success; however, success had been incremental.
The number one question from people living in the northeast quadrant of Orem was when
they could get access to fiber.
Everything would cost money which would require debt. The Councilmembers needed to
decide what their comfort level was on the matter. There was risk and reward with every
option; however, the City would have to assume some level of responsibility.
In reference to cosigning for a car, at the end of the loan the cosigner did not own the car.
It was wild-eyed optimism to believe they would reach build out within ten years without
the City stepping up to help.
DISCUSSION - Y2 Analytics Community Survey
Mr. Bybee introduced Dr. Quin Monson with Y2 Analytics to present a public research opinion
proposal. He then presented a draft of the survey to the Mayor and Council for review.
Mayor Brunst said he was interested in having the Council draft some questions for the survey as
well. Mr. Lentz said he would prefer to rely on professionals to craft the questions. Mayor Brunst
said the City Council should create some of them. The time was turned over to Mr. Monson for
the following presentation:
City Council Minutes - January 23, 2018 (p.7)


Why Conduct Citizen Surveys?
Discover preferences on important decisions
Discover priorities and broad preferences versus adjudicate between detailed proposals
Uncover correlations and even causality
Identify strengths and weaknesses of current programs and departments
 Provide counterweight to loud voices
Previous surveys Y2 Analytics had conducted for the City included:
·UTOPIA/Macquarie Proposal, 2014
CARE Tax/Parks,2014
·
City Communications, 2015
Citizen Satisfaction, 2015
Employee Survey, 2016
CARE Tax/Arts,2016
 Parks and Recreation, 2017
?
2015 Survey Methodology:
· Sampling frame of panelists consisted of a combined universe of panelists from all
households in the Orem City utilities accounts and the City newsletter databases, plus a
sample of 5,0o0 students living in Orem who attended Utah Valley University.
Duplicate email addresses were discarded. In total, they emailed 6,878 invitations.
Twenty-seven bounced back due to either incorrect email addresses or high spam filter
Of the 6,878 delivered invitations, 1,383 citizens responded with 1,322 completed online
surveys. This resulted in a rate of just over twenty percent overall. Each email response
could respond only once.
1,322 interviews among an estimated adult population of 61,612 resulted in a margin of
better approximate City demographic composition.
2017 Survey Methodology:
· Sampling frame of Orem City resident panelists were invited to participate in the survey
via email.
In total, 6,817 emails were sent to panelists. 1,015 panelists started the survey and 778
complete surveys were collected. This resulted in an overall response rate of eleven
percent. Given natural panel attrition, this was a healthy response rate comparable to
what they would see in a telephone survey.
  s ssa n    o   s 
margin of error for the survey of plus or minus 3.5 percentage points.
2018 Survey Methodology:
 Because of panel attrition through move outs, refusals and declining response rates, the
panel eventually became unrepresentative. They last refreshed the panel in August 2015
and used it through April 2017.
Sampling frame of panelists would consist of a combined universe of panelists from all
households in the Orem City utilities accounts and the City newsletter databases, plus a
sample of students living in Orem who attended Utah Valley University.
City Council Minutcs - January 23, 2018 (p.8)


The final sample for this survey would be weighted to the U.S. Census data for adult
residents of Orem so that the final results would be representative of all Orem residents.
Mr. Monson explained that because the public opinion environment around UTOPIA had been
complicated in the past, the proposed 2018 survey would investigate the viability of, and appetite
for, an acceleration of the fiber network build out. The survey draft was broken into five main
blocksofquestions:
City direction and priorities
·
Home internet use and provider
UTOPIA-specific questions, including the UIA bond proposal
Demographics
 Panel invitation
Mr. Monson said the internet questions for the proposed 2018 survey were exactly the same as
what was asked in 2014 for the Macquarie proposal.
DISCUSSION -University Parkway Corridor Study
Mr. Bench introduced Benj Becker with Zions Bank Public Finance (ZBPF) and said he would
be presenting a final report on the University Parkway Corridor Study.
Mr. Becker said this study was commissioned by UTA with Provo, Orem, UDOT and MAG as
partners. He said they met monthly as a steering committee which included members of the
City's Planning Department and the City Manager. He said the Bus Rapid Transit (BRT) would
not be transformative for Orem but it should be impactful. He said it would aid in development
and increase property values. He explained that the BRT could become more impactful if the
following were to occur:
Ridership increased beyond projections
·
· Lanes became dedicated
Office uses were emphasized along the route and near Orem Station
· Retail was brought up to the streets
High densityhousing was placed closer to stops
Mr. Becker stated there were two main nodes in Orem that needed to be emphasized: Orem
Station and University Place. He explained that throughout this process they went through all of
the existing conditions in Orem and Provo and created a housing report in relation to the Bus
Rapid Transit (BRT) line. They also assessed the market retail, existing property values as well
as achievable values, and existing conditions for bicycles and pedestrian uses. Mr. Becker then
described the process by which these analyses were conducted, and presented a list of
recommendations for each BRT site.
Mayor Brunst said when employers looked at whether or not to come to Orem, access to a mass
transit system was important to them. Mr. Becker said he heard similar feedback from office
tenants as well; however, just because these types of developments were located next to mass
transit did not mean that employees utilized the system.
5:00 P.M. STUDY SESSION -PUBLIC SAFETY TRAINING ROOM
City Council Minutes - January 23, 2018 (p.9)


CONDUCTING Mayor Richard F. Brunst
ELECTEDOFFICIALS Councilmembers  Debby Lauret, Sam  Lentz, Tom
Macdonald, Mark Seastrand, David Spencer, and Brent
Sumner
Jamie Davidson, City Manager; Brenn Bybee, Assistant
APPOINTEDSTAFF
City Manager; Steven Downs, Assistant City Manager;
Greg Stephens, City Attorney; Karl Hirst, Recreation
Department Director; Richard Manning, Administrative
Services Director; Bill Bell, Development Services
Director; Scott Gurney, Fire Department Director; Gary
Giles, Police Department Director; Josh Sorensen, Library
Department; Chris Tschirki, Public Works Director; Steve
Earl, Deputy City Attorney; Jason Bench, Planning
Division Manager; and Donna Weaver, City Recorder
Preview Upcoming Agenda Items
Staff presented a preview of upcoming agenda items.
Agenda Review
The City Council and staff reviewed the items on the agenda.
City Council New Business
There was no new City Council business.
The Council adjourned 5:54 p.m. to the City Council Chambers for the regular meeting.
6:00 P.M. REGULAR SESSION -COUNCIL CHAMBERS
CONDUCTING Mayor Richard F. Brunst
ELECTED OFFICIALS Councilmembers Debby Lauret, Sam Lentz, Tom
Macdonald, Mark Seastrand, David Spencer, and Brent
Sumner
APPOINTEDSTAFF Jamie Davidson, City Manager; Brenn Bybee, Assistant
City Manager; Steven Downs, Assistant City Manager;
Greg Stephens, City Attorney; Karl Hirst, Recreation
Department Director; Richard Manning, Administrative
Services Director; Bill Bell, Development Services
Director; Scott Gurney, Fire Department Director; Gary
Giles, Police Department Director; Chris Tschirki,
Public Works Director; Jason Bench, Planning Division
Manager; Peter Wolfley, Communications Specialist;
and Donna Weaver, City Recorder
City Council Minutes - January 23, 2018 (p.10)


INVOCATION/
INSPIRATIONAL THOUGHTDr. Ruhul Kuddus
Austin Moulton
PLEDGEOFALLEGIANCE
APPROVALOFMINUTES
Mr. Lentz moved to approve the January 9, 2018, City Council meeting minutes. Mrs. Lauret
seconded the motion. Those voting aye: Richard F. Brunst, Debby Lauret, Sam Lentz, Tom
Macdonald, Mark Seastrand, David Spencer, Brent Sumner. The motion passed unanimously.
MAYOR'S REPORT/ITEMS REFERRED BY COUNCIL
Upcoming Events
The Mayor referred the Council to the upcoming events listed in the agenda packet.
Appointments to Boards and Commissions
Mrs. Lauret moved to appoint Ashlie Mann, J. Teresa Davis, and Jana Kofford to the
Summerfest Advisory Committee. Mr. Lentz seconded the motion. Those voting aye: Richard F.
Brunst, Debby Lauret, Sam Lentz, Tom Macdonald, Mark Seastrand, David Spencer, Brent
Sumner. The motion passed unanimously.
Walter C. Orem Award -Orem VIPs
Mayor Brunst presented the Walter C. Orem Award to the Orem Volunteers in Police Service
(VIPS) volunteers. He then invited them to come forward to shake hands with the Council.
PERSONALAPPEARANCES
Time was allotted for the public to express their ideas, concerns, and comments on items not
scheduled as public hearings on the agenda. Those wishing to speak should have signed in prior
to the meeting, and comments were limited to three minutes or less.
Angel Busath said she was opposed to the Peg development, asserting that the only people in
favor of the project were students or property owners who had sold out and moved. She
expressed appreciation for the developer working to decrease the impact.
Bonnie Merrell voiced concern about the growth of Utah Valley University (UVU). She said it
was too large now and asked the Council to talk with the university about capping the student
population so projects like Peg would not be needed.
Devin Rich thanked the Council for giving Orem a great reputation. Over the last year he had
attended the Public Works Advisory Committee (PWAC) as they had researched where UTOPIA
could go. He said he was in favor of a recommendation to move forward with investigating a fast
build-out for Orem.
Todd Hadley said he served on PWAC. He indicated he had spent the last twenty-five years in
the fiber market. He was a technical advisor to companies as they considered where to settle.
City Council Minutes - January 23, 2018 (p.11)


Because the City could not currently afford not to expand the UTOPIA network to all of Orem,
he was placed in a position of not recommending businesses locate here. He said he strongly
encouraged the Council to take the advice of the committee and complete the UTOPIA network
in Orem.
CONSENTITEMS
MOTiON - Authorizing the Mayor _to_execute an agreement outlining the City's
participation in the BLU Fund
Mayor Brunst moved to shift the following item to the Scheduled Calendar. Mr. Lentz seconded
the motion. Those voting aye: Richard F. Brunst, Debby Lauret, Sam Lentz, Tom Macdonald,
Mark Seastrand, David Spencer, Brent Sumner. The motion passed unanimously.
MOTION - Reschedule the March 20, 2018 City Council meeting to March 27, 2018
Mayor Brunst moved to continue the March 20, 2018, City Council meeting to March 27, 2018.
Mr. Macdonald seconded the motion. Those voting aye: Richard F. Brunst, Debby Lauret, Sam
Lentz, Tom Macdonald, Mark Seastrand, David Spencer, Brent Sumner. The motion passed
unanimously.
SCHEDULEDITEMS
MOTION - Authorizing the Mayor to execute an agreement outlining the City's
participation in the BLU Fund
Ryan Clark, Economic Development Division Manager, reviewed a recommendation to
authorize the Mayor to execute a Credit Agreement outlining the City's participation in the BLU
loan program with the Utah Small Business Growth Initiative, LLC acting as the Class A Lender.
At the October 6, 2017 City Council Meeting, the City Council passed Resolution R-2017-0018
authorizing participation in the Small Business Loan Program administered by the Small
Business Loans of Utah (BLU) and found that the appropriation of money to the BLU Fund met
the requirements of Utah Code § 10-8-2. The City Council postponed the approval of the Credit
Agreement until the agreement was finalized.
On November 14, 2017, the City Council unanimously passed a motion authorizing the Mayor to
sign the Credit Agreement as amended. Since that time, the participating entities have proposed,
reviewed and agreed to additional amendments. The most significant amendment agreed to is the
substitution of Utah Small Business Growth Initiative, LLC (USBGI) as the Class A lender.
USBGI replaces Zions as the party obligated under the Credit Agreement to provide the 7 to 1
matching funds that will be available to applicants seeking loans from the BLU program. The
Credit Agreement (as amended) is now ready for the Mayor's signature.
The Economic Development Division Manager now recommends that the City Council, by
motion, authorize the Mayor to execute the Credit Agreement.
CityCouncil Minutcs-January23,2018(p.12)


Mr. Lentz asked Mike Plazier, USBGI, if there were any possible conflicts of interest with his
role in the different entities. He said they saw those as minimal and not all that different from the
original agreement with ZionsBank.
Mr. Lentz asked if there were any increased risks, and Mr. Clark there was actually an advantage
to it with a lower interest rate. It would help the businesses, and there was already a business
loan request waiting on this approval.
Mr. Macdonald moved authorizing the Mayor to execute an agreement outlining the City's
participation in the BLU Fund. Mrs. Lauret seconded the motion. Those voting aye: Richard F.
Brunst, Debby Lauret, Sam Lentz, Tom Macdonald, Mark Seastrand, David Spencer, Brent
Sumner. The motion passed unanimously.
6:00 P.M. PUBLIC HEARING - Walker Monument Sign Zone Amendment
ORDINANCE -Amending Section 14-1-4 of the Orem City Code by changing the sign
zone of Walker Monuments located at 737 North 1200 West from Sign Zone E to Sign
Zone F
The applicant withdrew this request.
6:00 P.M. PUBLIC HEARING - Purchasing Policies & Procedures Amendment
ORDINANCE - Amending Article 2-7 of the City Code regarding purchasing policies
and procedures by making adjustments for inflation, allowing for new technologies and
purchasing methods, clarifying.and adding requirements, and making other technical
changes
Mr. Stephens, City Attorney, requested that the public hearing to discuss amending the current
code regarding purchasing policies and procedures be continued to the City Council meeting to
be held on Tuesday, February 13, 2018, at 6:00 p.m.
Mr. Seastrand moved to continue the public hearing to discuss amending the current City Code
regarding purchasing policies and procedures to the City Council meeting to be held on Tuesday,
February 13, 2018, at 6:00 p.m. Mr. Lentz seconded the motion. Those voting aye: Richard F.
Brunst, Debby Lauret, Sam Lentz, Tom Macdonald, Mark Seastrand, David Spencer, Brent
Sumner. The motion passed unanimously.
ORDINANCE - Amending the Current Fiscal Year 2017-2018 Budget
Mr. Nelson noted that the Fiscal Year 2017-2018 City of Orem budget had many adjustments
that occur throughout the fiscal year. Those adjustments included grants and donations received
from Federal, State, and other governmental or private entities/organizations; adding additional
project funds due to interest earnings on the Siemens energy savings improvement lease escrow
account unspent funds; and various other smaller technical corrections or minor budget
adjustments that needed to be made.
Mayor Brunst opened the public hearing. No one came forward, so he closed the public hearing.
City Council Minutes - January 23, 2018 (p.13)


Mr.Seastrandmoved,by ordinance,toamend the CurrentFiscalYear2017-2018Budget.Mrs.
Lauretseconded themotion.Thosevoting aye:Richard F.Brunst,DebbyLauret,SamLentz,
unanimously.
COMMUNICATIONITEMS
TheMonthlyFinancialSummaryforDecember2017wasincludedinthepacketsdistributed to
the Council.
CITYMANAGERINFORMATIONITEMS
Mr.Davidson said that today was the second day of the legislative session.He had asked Heather
Schrievertofollowpertinentbills.
Issues they were watching:
Transportationissues
Homelessness
Small cell technology
Referendumlaw
Affordable housing
GovernanceofUTA
ADJOURNMENT
Mr.Spencer moved to adjourn the meeting. Mrs. Lauret seconded the motion. Those voting aye:
Richard F.Brunst, Debby Lauret, Sam Lentz, Tom Macdonald, Mark Seastrand,David Spencer,
BrentSumner.Themotionpassedunanimously.
The meeting adjourned at 6:43 p.m.
CORPORATE
SEAL
Ooma R. aver
Donna R.Weaver, CityRecorder
Approved:February13,2018
CityCouncil Minutes-January23,2018（p.14)